Cinemex Files for Second US Bankruptcy Amid Streaming Disruption

Cinemex Holdings USA, the US subsidiary of Grupo Cinemex, has filed a second petition for bankruptcy under Subchapter V of the United States Bankruptcy Code. This action seeks debt restructuring and financial strengthening, while maintaining operation of its 28 complexes and 311 screens.

According to a company statement, "the restructuring process will reduce our debt and strengthen our balance sheet and liquidity position," which underscores the strategic nature of this measure to ensure the long-term operational and financial viability of CMX Cinemas.

Cinemex Holdings USA, known as CMX Cinemas in the US market, is filing for a second time just five years after its initial bankruptcy declaration in April 2020. That occasion was directly linked to the impact of cinema closures caused by the COVID-19 pandemic. The current situation, however, reflects a more complex issue, attributable to the rise of streaming platforms and a structural transformation in entertainment consumption habits. The traditional cinema exhibition industry faces a sustained decline in box office revenues, which places pressure on existing business models and demands a reevaluation of operational and financial strategies. This second bankruptcy filing illustrates the persistent challenges and inherent volatility within the live entertainment and cinema exhibition sector.

Subchapter V of the Bankruptcy Code offers small businesses the possibility to reorganize their finances under judicial supervision, while maintaining operational control and ownership of their assets. This legal framework allows for a simplified scheme for debt restructuring. Cinemex Holdings USA, as Naples Daily News reports, aims to present its reorganization plan to the court during 3Q25, with the expectation of meeting the requirements to exit the process in that same period. 

As an integral part of this reorganization process, the company plans to evaluate its portfolio of commercial leases in the United States, reports Expansion. The objective is to renegotiate terms with property owners, aiming to establish a more efficient cost structure. This measure is fundamental to optimize operational profitability and to position the company for sustainable long-term growth. CMX Cinemas' operation spans 28 complexes and 311 screens, with a workforce of about 1,400 employees. The continuation of its operations without interruption during the bankruptcy process is a key aspect to preserve its customer base and market share.